Consultation outcome

Limited liability partnerships (LLPs) and qualifying partnerships: deregulatory changes

This consultation has concluded

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Detail of outcome

We will introduce legislation to align the financial reporting regimes for Limited Liability Partnerships (LLPs) and companies, and introduce new ‘micro-entities regimes’ for LLPs and qualifying partnerships.

The changes include:

  • raising thresholds used to determine the size of LLPs
  • limiting the number of mandatory notes required of small LLPs
  • giving LLPs the opportunity to use alternative layouts when preparing their profit and loss accounts and balance sheet
  • allowing small LLPs to prepare an abridged balance sheet and profit and loss account
  • permitting the use of the ‘equity method’ in individual LLP statements

View the legislation and the related impact assessment.

Feedback received

Deregulatory changes for limited liability partnerships (LLPs) and qualifying partnerships: responses

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Detail of feedback received

We received 13 responses from various organisations including:

  • chartered accountancy bodies (2)
  • accounting firms (7)
  • representatives and other bodies (4)

Original consultation


We're seeking your views on proposed changes to financial reporting for limited liability partnerships and qualifying partnerships.

This consultation ran from

Consultation description

We’re seeking your views on proposed deregulatory changes for limited liability partnerships and qualifying partnerships.

To put the EU Accounting Directive in place, we made changes to the financial reporting framework for companies. These changes reduced regulation and administration. We propose introducing similar changes to financial reporting for LLPs and qualifying partnerships to:

  • make sure LLPs can benefit from the same reporting process
  • maintain consistency across business sectors

These changes include raising the thresholds for LLPs currently classed as small, and introducing a new ‘micro-entity regime’ for qualifying partnerships and the smallest of LLPs.


Published 20 November 2015
Last updated 19 February 2016 + show all updates
  1. Added government response.

  2. Added public feedback.

  3. Updated paragraph 8.3 of consultation document. New text clarifies that the question of whether specific thresholds for the audit exemption should be introduced, and if so at what level, is still under consideration.

  4. First published.